LED lighting power chip company Jiehuat launches IPO

On December 6, Jiehuat Microelectronics Co., Ltd. (hereinafter referred to as "Jiehuat") announced the official launch of its IPO. The company will be listed on the Science and Technology Innovation Board and publicly issue 58.08 million ordinary shares. The initial inquiry date for this issuance is December 9, and the subscription date is December 14.

According to the latest prospectus, Jiehuat plans to raise 1,570.9473 million yuan in this listing, which will be invested in five major projects including high-performance power management chip research and development and industrialization projects.

Jiehuat said that the implementation of this project will help the company combine its own processes, quickly respond to design needs, improve the research and development capabilities and efficiency of high-performance products, realize the differentiation of the company's technology and products, and make breakthroughs in emerging application fields, further enhancing the market competitiveness of the company's analog chip products.

According to data, Jiehuat was founded in 2013 and is an analog integrated circuit design company with virtual IDM as its main business model. Since its establishment, the company has completed multiple rounds of financing, and its shareholders include Hubble Investment, Intel, BYD and other well-known companies. At present, Jiehuat's products are mainly power management analog chips, and it is gradually expanding its signal chain chip products and is committed to providing one-stop analog integrated circuit product solutions.

In terms of power management analog chips, the products mainly include AC-DC chips, DC-DC chips, linear power supply chips, and battery management chips. Among them, AC-DC chips are mainly used in the LED lighting industry, and DC-DC chip product applications cover automotive electronics, communication electronics, computing and storage, industrial applications, consumer electronics and other fields. From 2019 to 2020, AC-DC chips and DC-DC chips accounted for 87.65% and 87.42% of Jihuat's main business respectively.

In the field of LED lighting, Jiehuat has a number of technical patents at home and abroad. Among them, the ripple elimination circuit and LED control circuit patents developed by Jiehuat won the "China Patent Excellence Award" issued by the State Intellectual Property Office in July 2020. At present, Jiehuat still has a number of LED lighting driver chip technologies that are under continuous development.

In terms of gross profit margin of LED products, Jiehuat said that the gross profit margin of the company's chips in the LED lighting field was low from 2019 to 2020. In 2021, affected by market demand, the gross profit margin of chips in the LED lighting field will increase significantly, which is in line with industry trends.

In terms of company performance, from 2019 to 2021, Jihuat’s operating income was 256.844 million yuan, 406.5826 million yuan, and 1.0415595 million yuan respectively, with an average annual compound growth rate of 101.38%. From January to June 2022, the company achieved operating income of 701.6587 million yuan; the net profits attributable to owners of the parent company were -79.9506 million yuan, -270.0252 million yuan, and 141.975 million yuan respectively, and from January to June 2022 it was 93.9313 million yuan.

Jiehuat predicts that in 2022, the company will achieve operating income of approximately 1.4 billion to 1.6 billion yuan, a year-on-year increase of 34.46% to 53.67%; the net profit attributable to shareholders of the parent company will be approximately 136 million to 190 million yuan, a year-on-year increase of -4.21% to 33.83%.